2004-10-31 20:48:02Good News From Iraq. In the media, we constantly see continued problems in Iraq. Violence seems to be everywhere, people die and various organisations are leaving the country. Often, this is also considered to show that the invasion of Iraq and the removal of Saddam Hussein was wrong. But there are numerous other facts from the new Iraq that are seldom shown in the media; positive signs of a free society being built step by step. There is a new currency, schools are being built, more people go to work, ever more companies are listed on the new stock exchange, tens of free newspapers are circulated, elections will be held in January. And don′t forget what is not there any more; no killings of curds, no torture by the regime, no totalitarian oppression. Andrew Cherenkoff gathers such facts, also about the new Afgahnistan (where the first person to vote in their first free elections ever was a 19-year old woman), and it is very useful reading - not least as a balance against the ordinary media.Follow Cherenkoffs blog - >

2004-10-31 20:32:21Re-elect Assemblyman Wright. New York City is far from being a battleground place before the Presidential election. Thus, there is lots of more attention given to Halloween than to the campaigns. But one should remember that it is not just the President that is elected but also parts of Congress - and not least several local elections. For example, in Harlem I came across the poster which can be seen below for the re-election of assemblyman Wright. And of course, in NYC the terror threat is still closely felt by many. Thus, the bin Laden recording shown on TV has again made the war on terror the abolute centre issue of the debate. New York Post today wrote about "spin Laden" due to the efforts of the both campaign?s media spinners to try to use it for their candidate. Probably that will benefit Bush, since his credibility on that issue is much stronger than Kerry?s.Poster of assemblyman Wright in Harlem - >

2004-10-30 13:03:38Interactive Election Map. Currently, Bush is still in a slight lead in the polls. This Interactive Election Map shows the latest polls and the situation in all the states. Still over 200 electoral votes are too close to call. The remaining days will be a thriller.

2004-10-30 12:55:16Conspiracy Theorists Get What They Want. Just prior to my departure to NYC, the news revealed that al-Jazeera has broadcast a new tape showing Osama bin Laden presenting new threats. Since the American election is only three days away, commentators directly discussed what possible impact this might have on the results. Most seem to agree that it helps Bush, because his credibility in the war on terror is stronger than Kerry?s. Perhaps they are wrong, not least since Kerry has criticised Bush for going to Iraq instead of catching bin Laden. Anyway, beyond doubt is that the conspiracy theorists that have believed that bin Laden one way or another would appeear before the elections get what they want. From a Swedish perspective, however, the most uncomforting aspect of this new bin Laden tape might be that he says that that he would not attack Sweden. So he hates America - and what? Does he like Sweden? What does that say about our country?Read a transcript of the bin Laden tape - >

2004-10-29 13:29:46The Importance of China?s Economy. For the first time in nine years, China yesterday raised its interest rate. This is one attempt to cool down the booming economy; GDP grew with over 9 per cent the last quarter. Inflation is rising. The Financial Times today has a good analysis. This has sent shock waves through not only the stock markets in China but also the rest of the world. Everyone knows that the Chinese economy has to be cooled down, but it is still uncertain whether they will make a "soft landing" or a more tough one. Perhaps the most important conclusion of the events following this decision is that it illustrates the current importance of the Chinese economy. It has grown extremely strong for decades; it is now 650 per cent larger than in 1980. Predictions say that in a few more decades, it will be the second largest economy in the world. And in an open and interconnected world, what happens in China affects the lives of people in Sweden. There will be more of this as time goes by.

2004-10-29 13:20:53One Month with munkhammar.org. One month ago on the day, I started this web log. Since then, it has attracted over 7 500 returning visitors. I have also received many comments - thanks! Several conclusions might be drawn from this phenomenon. First, the web log - blog - is indeed a channel for communication in the rising. The number of visitors can be compared with the number of people who read editorials in the larger countryside dailies. Second, the blog seems to be competing with e-mail newsletters. And to many, the blog is a more attractive source of information, not least since you choose if, when and what you want to read. Third, in Sweden, the dominance of freedom forces using this channel is striking. Perhaps political scientists in a few years will conclude that this development gave politics and the debate a new injection of thoughts on freedom and contributed to change.

2004-10-28 14:24:58Growth Saves Children?s Lives. Some say that economics in general and GDP-figures in particular are just theories without effects in reality. Growth is called materialistic - something that doesn?t actually increase living standards. One of the best proofs of the opposite is the World Health Chart. The UN and Karolinska Institutet, among others, have designed it. There, one can see a strong correlation between GDP per capita (the x-axis) and how many children out of 1000 born that actually reach grown-up age (the y-axis). All the countries lie in a near perfect line. Rich countries have many children that live, poor countries don?t. And this is a correlation which has been the same for the about 100 years from which there are statistics. Hence GDP growth increases living standards in reality in the most important sense imaginable. The obvious conclusion is that a free economy that increases growth should be priority one for all countries.

2004-10-27 11:58:22Restart Barroso. Hours before the vote in the European Paliament on the European Commission, President-Designate José Manuel Barroso withdrew his proposal. Obviously, he considered the risk of having a "no" majority to be too big, despite weeks of negotiations, compromises and changed propsals following the questioning of the proposed Italian Commissioner Rosso Buttiglione. Now, the Prodi Commission will continue until mid-November when Barroso will present a new proposal. One important sign from these events is that the checks and balances of the EU system actually work. Another is the issue itself, where many European Parliamentarians seem unable to draw a line between private life and politics - typically mostly the socialists. I don′t agree with Buttiglione′s reactionary views in the private sphere more than they do, but that doesn′t mean that he is unfit as a Commissioner. It must be possible for people who have conservative Catholic views in private life to hold leading European positions. Just as it must be for Muslims in the future when Turkey and Bosnia are members.

2004-10-26 22:04:12The US and Europe - and Warnings about Kerry. When I spoke in Lund earlier tonight about the relation between the US and Europe, I gave an optimistic view of the future. No matter who wins the election, the American President will try to build better relations with Europe. The differences over the Iraq war will fade and economic realties will gain in importance. First and last, on both sides of the Atlantic, in peacetime, jobs and growth is what means most for voters and hence politicians. And despite the fact that Europe lags behind economically, the economic ties are strong. The US foreign direct investment, FDI, in Europe was 87 billion dollars in 2003 - an increase with 30 % since 2002. The US has ten times more assets in Holland alone than they do in China. And the EU does 75 % of all the FDI in America every year. So the ties over the Atlantic will be repaired. Some say that Kerry would have the best opportunities to do it; not least since he speaks French. Based on economic reasons again, I believe the opposite. John Kerry and John Edwards have proposed an economic program with a clear protectionist profile. They would subsidise American industry, re-negotiate every trade deal the US has signed and impose tariffs. That would harm global trade, make poor people poorer - and make relations with Europe worse.Read my article that compares the two economic programs (in Swedish) - >

2004-10-25 13:15:04Prodi: "Lisbon is a failure". When the Lisbon Process was launched in 2000, the aim of its reforms was to close the GDP gap with the US by 2010. Now that we have come almost half way, the gap has grown larger. Outgoing President of the European Commission, Romano Prodi, now talks of missed objectives, failed promises and calls it all a failure. Which, of course, is nothing but the obvious truth. On November 5th, however, former Dutch PM Wim Kok will deliver his report on how to repair the failure. His report has already been sent to Financial Times, and they reveal parts of it today. Apparently, Mr Kok is also stating the facts of the failure. He blames it on a lack of political will. Now he presents new proposals, such as fast-track work permits, speeding up work to complete the single market and reshaping the EU budget. Indeed some well-meaning proposals. But why would the political will suddenly appear? And everyone knows that most of the reforms necessary in Europe - lower taxes, de-regulations, free enterprise in welfare services - have to be decided on the national level. Not to be a pessimist, but the hill upon which the road to serious reforms for growth goes is still steep.

2004-10-24 23:26:24Bush in a Narrow Lead. With nine days left until the American Presidential election, George W Bush is in the lead. In the latest polls, he leads by between one and six per cent. See all the lastet polls here. This election has been called a referendum on President Bush. He is a controversial leader with strong ideas that he pursues forcefully. John Kerry had at least 40-45 per cent of the votes just by not being Bush. But Kerry seems unable to reach out to enough of the rest of the voters. The momentum that was building after his good efforts in the debates was halted when Bush turned out very positive in the last one. And so far Kerry isn?t winning the issues; people still trust Bush on foreign policy and the economiy is going fairly well - by American standards, very well by European standards. Still, the election is decided in the dozen swing states, where both candidates are now campaigning relentlessly. And in the final campaign, Kerry will take help from Bill Clinton and Bush from Arnold Schwarzenegger.

2004-10-22 15:07:20The World is Getting Better, Part II. In the year 1900, the average person in America had to work 107 hours to be able to afford 100 KWh of electricity. In the yesr 1990, he or she only had to work 43 minutes for the same amount. In 1950, the work to afford 1 MIPS (Million Calculations Per Second) of computer power was 515 000 lifetimes. In 1990, it took about 14 hours. A sample of 12 food staples, enough for three meals, took 2 hours and 22 minutes of work to afford in 1970, but today it takes 1 hour and 45 minutes. This, and much more, is the effect of free competition. Technical and organisational improvements take place where companies compete for the customers. In the globalised world of today, the pace of this development increases. Goods and services are prouced where the best quality to the lowest prices can be achieved.

2004-10-21 15:25:07The World is Getting Better - Thanks to the Free Economy. According to the International Monetary Fund, IMF, the economies of "emerging market and developing countries" will grow by 6,6 % this year. The countries in Sub-Saharan Africa will grow by 5,8 %. The figures are high indeed. The advanced economies will have a growth of about 2 %. Significantly lower, but a reasonable level. Thus, the entire world economy is growing - we don′t grow at each other′s expense, all can win. And the poorer countries grow the fastest. The reason? We have a more open and globalised world than ever. This benefits the poor countries the most. We can also see how market economic fundamentals such as fiscal discipline and de-regulated markets are established in poorer countries. The world gets better, thanks to a free economy.

2004-10-20 16:10:11If You Lose the Jumping Contest - Throw the Yard Stick Away. When the EU:s Lisbon Agenda was invented in 2000, the proud aim of its reforms was to close the GDP gap with the US by 2010. By then, US GDP per person was about 50 % ahead, now it is farther ahead and the gap is still widening. Now, this is what European policy makers agreed on at a seminar in Brussels: "No more comparisons with the US." Thus, they seem unable to do the economic reforms in Europe necessary in order to increase growth and prosperity. So the comparison with the US gets ever more embarassing and they scrap it. If you don?t look, it doesnt?t exist. It is like losing a jumping contest largely and throwing away the stick that you do the measuring with as the solution. Where is the Europe where capitalism once started, where is the spirit that created the industrial society, where is the Europe of the single market?

2004-10-20 11:54:46The Land of the Free."I like the tax cut, because now I can afford a better education for my son."
This was said by a man in California who was interviewed on TV the other day about the American election and the Bush tax cuts. This would never ever have been said in Sweden. Here, people think that higher taxes is the only way to better education. The reason? Government has monopolised education - and lots of other services - and created a society where one is allowed to buy any car, hot dog or medicin one likes, but not education. Or health care, elderly care, child care, etc. Thus, now we even have a government monopoly on thinking about these services. Choosing and paying by yourself is not an option. In America, the natural thought is that with lower taxes, you can afford things you like, not least education. And that is a better way to go; you get to choose, less money is wasted in inefficient public monopolies, growth can increase and a variety of companies can compete for your consuming.

2004-10-19 14:08:28Bush 52 %, Kerry 44 %. In the CNN/USA Today/Gallup Poll Tracker of likely voters, Bush is again in the lead. Kerry did very well in the TV Debates when it comes to the issues, but Bush is still clearly the most likeable person. Perhaps the strong general performance of Bush in the third debate has had an impact too. Follow the Poll Tracker - >

2004-10-18 10:53:02Why the High Oil Price? The price of oil has risen by more than 70 per cent during ths past year. Despite the fact that the world economy today is less dependent on oil than it was in the 70s, many worry that this development will stop the global economic recovery. In this interesting paper, my friend Fredrik Hjelmqvist, CEO of Introvista, explains the causes of the rise in the oil price and predicts that it will decrease substantially in the coming months. The main cause of the rise, according to him, is political instability in many oil producing countries. Its the problems with Chavez in Venezuela, Yukos in Russia, rebellions in Nigeria and violence in Iraq. This cuts the supply of oil while the demand is stronger than it has been in a long time. He concludes, however, that most of the increases are not based on economic fundamentals and that the price level will fall again after the elections in the US and in Iraq. Read the paper (in Swedish) - >

2004-10-16 13:25:49Selective Competitiveness Index. In this year?s Growth Competitiveness Report from the World Economic Forum, Sweden is again considered to be the third most competitive country in the world. Finland is number one, the US two, Taiwan four, Denmark five and Norway number six. It is always nice to hear positive remarks about your country, and this index does have its qualities. Unfortunately, it is sometimes regarded as proof that we don?t need to make any changes in our society in order to increase growth. Since we have very high taxes but still rank number three, the defenders of the system claim that high taxes don?t have any significant negative effects on the economy. The defenders of a highly regulated labour market and large public monopolies say the same. But this index simply doesn?t put any weight on these factors. That is obvious since the US, with its low taxes, and Sweden, with the very high taxes, are put next to each other. Instead, emphasis is put on the technological readiness, the state of the public insitutions, business competitiveness and the general macroeconomic environment. So what the index says is that Sweden is good at technology, has good public institutions and competitive business. In the last category, macroeconomic environment, Sweden is number 17. Thus, in the category where taxes, monopolies and regulations are taken into account, we score badly. It is a pity that the index doesn?t focus more on these issues since they are the essential ones for developed countries. And they are directly within the political responsibility and possibility to change.

2004-10-15 11:08:50Two Weeks and 5000 Returning Visitors Later. Since its release two weeks ago, this web log has attracted some 5000 returning visitors. That is, according to surveys, comparable to the number of people who read editorials in the larger Swedish countryside dailies. It has also been quoted in several countries, other web logs and newspapers. Many people have sent comments and ideas - please continue to do so, feed-back is great! I will continue to create a content which provides new facts, analyses and arguments in order to match the demand.

2004-10-15 09:47:06Reducing Poverty by Reducing Government. Many people are rightfully engaged in a discussion aboout poverty and how to reduce it. Unfortunately, most of these describe the causes of poverty totally wrong, which makes the propsed solutions counterproductive. The blame is often put on the free society, capitalism, and the solutions are often different kinds of more government interference. For example, the Kerry-Edwards economic program contains quite a few such proposals, such as raising the minimum wage. In this article, George Reisman of the Ludwig von Mises Institute, argues the opposite. He shows convincingly that big government is the cause, not the solution, to poverty. The minimum wage creates unemployment and higher consumer prices. He also shows how licensing and prounion legislation hampers productivity growth - the real source of wage increases - and forces people into jobs they did not choose and into government programs. This is one of the daily articles from the Mises Institute, which in my view is one of the very best daily e-mail newsletters one can subscribe to.Read the article - >

2004-10-14 09:51:40Did Bush Win the Final Debate? I admit to being surprised; John Kerry has been a very good debater. After seeing him speak and debate in the primaries and the start of the campaign, it seemed likely that George W Bush would win the debates. But Kerry changed - he started to express himself in a clear, confident and strong way. In the first debate, it seemed as if Bush was surprised too; Kerry won that one. All in all, Kerry has given his best impression ever in these three debates. Bush, on the other hand, was unfocused in the first debate, tough and quick in the second - and did his best performance in the third debate yesterday. He was positive, commanded the facts and on the offense. The rise from the first debate is almost remarkable. Polls show an even match from yesterday, but perhaps Bush just by improving so much changed the game again. The days to come will tell.See the debate - >

2004-10-13 10:01:34European Union or OECD+? Yesterday, I participated in a panel debate at the annual summit of the Pan-European Movement. The debate became an interesting dicussion about several issues of great importance for Europe in the long run. I pointed out, among other things, that one positive aspect of the enlargement is that the least common denominator between the member countries gets smaller. That implies that the EU will have to focus more on its core mission: to tear down borders and increase freedom and mobility - not to build new social systems. I also argued that it is highly likely that the referendums in several countries about the proposed Constitution will create the two-speed Europe that has been dicussed for years. A Europe where some have the new Constituion and some in the periphery will use the Nice Treaty. In the panel the most renowned EU journalist in the country, Rolf Gustavsson of Svenska Dagbladet, also participated. His interpretation of Jacques Chirac lately is that he acknowledges that there will be a two-speed Europe and that he wants to build a core co-operation based on the Euro Zone. Mr Gustavsson also pointed out that one great problem today in the EU is the tendency to replace the rule of law with various political deals. One example is the handling of the stability pact, another that the German government continues to subsidise industry despite the fact that it is prohibited in the internal market. This, he concludes, creates a risk that the unique foundation of the EU as an international co-operation based on the rule of law falls apart and is replaced by a weak OECD+. That must not happen; the EU should focus on its core mission but that core must be based on the rule of law.

2004-10-12 12:27:57TV4 and American Tax Cuts. In Sweden, media often have a tendency to report about America in a negative, selective or misleading way. That is also the case in most other parts of Old Europe. During election times, particularly much negative is written and said about Republicans - with whom European journalists share few personal opinions. This fact has been analysed and debated at Amerikabrev and recently in detail particularly often i The Stockholm Spectator. The tabloids are the worst in deviating from objective reporting, but other news media sometimes also have that tendency. Yesterday at TV4, reporter Bertil Karlefors made a story from a Republican part of California. The people there were portrayed as rich people that just want to get richer by having their taxes lowered by Bush. This was accompanied by claims that Bush only has lowered taxes for the very rich. Nothing was said about the fact that everyone now pay lower taxes. But if you decrease taxes with one per cent, the person that earns 1000 dollars will keep 10 and the person that earns 10 000 will keep 100. And if you only decrease taxes for people with low incomes, you get a more progressive tax-system. That is why it was done for everyone. Of course, neither was it mentioned that the lower capital taxes, according to a new study, lead to a boost in the stock market that increased investor wealth more than $ 2 trillion! Such wealth is a precondition for investments and new jobs. The TV4-story ended with words like: and so the sun sets in the America of rich and poor. That is misleading and spreads prejudices about America.

2004-10-11 11:08:51Howard Wins Again in Successful Australia. During the last two decades, Australia has become a star on the global economic sky. The success is the result of market-oriented reforms since the 1980?s. Now Prime Minister John Howard just won a fourth term in office. Read more about the election and its implications here. This election result shows clearly that the Australian people likes the reforms. That may not be surprising; high growth creates ever better living standards and more jobs. One sign of the economic success can be seen at migrationexpert.com where the Australian government seeks more people. 200 000 work visas have been made avaliable until 2006. In fact, the reforms are working so well and are so popular that the entire political landscape has changed. There are hardly any forces that want to stop change or bring the old times back. The main parties are competing about who wants more reforms. This is a contrast to Europe, where politicians are afraid of even the most necessary reforms. But Australia shows that reforms work, and that the politicians who have courage to act for change are rewarded in due time.

2004-10-11 09:51:00The Strengths of the Bush Economic Record. Currently, the polls show quite even figures before the US election. That implies that the third and final debate on Wednesday in Arizona State University between Bush and Kerry will be important. The topic will be domestic issues, and thus mainly economic issues. All this year there has been quite a lot of discussion about jobs and economy, and the record of President Bush has been scrutinised. Indeed, he has been President during a recession which got worse following September 11th. Unfortunately, the discussion has so far not so much concerned whose economic ideas are the best for the future. In my view, that is the most important reason to vote for Bush. Now, the Heritage Foundation has produced an analysis showing that the economic record of Bush so far, even during these tough times, has been rather good. They find that output is booming, the manufacturing outlook is positive, business confidence is high, and productivity continues to set records. Even such canards as income inequality, tax burden, health coverage, worker discouragement show grounds for optimism.Read the analysis here - >

2004-10-08 16:08:54Praise from Norberg. My good friend, and indeed globally respected analyst and writer, Johan Norberg, comments my new book. He calls it "an important work" that he likes and recommends: "Important reading for those of us who want to change the system. Necessary reading for those who want to conserve it. They will see what they are up against." Also, don?t miss Johan?s blog, which is the best one in the country.

2004-10-08 13:25:22Old Europe - New System. We live longer, which is a great success for humanity. But the government′s systems for health care, elderly care and pensions are constructed for another reality. When the pension age of 65 was introduced in Sweden, life expectancy was 55. Now, the real pension age is 58 and we live, on average, for 80 years. This development is a fact in many countries, particularly in western Europe. In Italy, for example, the working-age population will fall from today′s 39 million to 22 million in 2050. The Economist recently published an article that claimed that Germany will have to have an immigration of 3,6 million people every year until 2050 - just to keep today′s ratio between the working and the supported. That is 180 million immigrants! In Spain, pensions will account for 80 per cent of the public expenditure by 2030 if the systems are kept unchanged. These things portray an unsustainable system. The demographic development is a promise of a longer and healthier life. But big government makes it a problem. We have to change our view about what working age is, limit government size and increase private responsibility. That is the only way to make the promise come real.

2004-10-07 11:56:34Successful Presentation. Yesterday evening, my book "Sagan om välfärdens återkomst" was presented at a seminar. Maud Olofsson, leader of the Centre Party, and Stig-Björn Ljunggren, Social Democrat, commented. Some 70 people came to the seminar, and the debate got quite lively - and continued during drinks afterwards. Maud Olofsson said that "the book contains many good things" but thought that I was too critical to politicians - at least from her party. Stig-Björn Ljunggren personally had many positive things to say about the book. Thus, he had to assume the role of Bosse Greider (a combination of the Finance Minister and a socialist newspaper editor) in order to fulfil his task as opponent and he presented a number of critical arguments. Here, you can read my introduction. The book can be bought in any bookstore in Sweden and can be ordered here.

2004-10-07 11:04:29Welcome, Turkey! The European Commission recommends the EU to start accession talks with Turkey. The decision will be taken at a European Summit in mid-December. The recommendation is based on a report which analysed the current situation in Turkey with regards mainly to human rights, democracy and the rule of law. Here you can read a summary which also links to the report. The recommendation is, however, a "yes, but...". It emphasises that the outcome of the talks isn?t necessary EU membership, just that it is the aim. Some people also say that 10 years of negotiations is a minimum and that it could well take 20 years. This recommendation is thus a compromise; it is a reluctant "yes". That is unfortunate and means that we who strongly want Turkey in the EU must continue to argue our case. But the direction is clear: Welcome Turkey!

2004-10-06 13:22:17A Good Start. One week ago, I introduced this web log. Since then, there have been 3800 visits. At least 2900 visitors have come one or several times. I have also received many positive comments from friends, politicians, journalists and colleagues. I will try to match those high expectations in the future!

2004-10-05 09:33:12No cometan el error de Suecia! I was invited by market-oriented think tank Fundacion Libertad in Panama to write an op-ed article in one of their largest dailies, El Panama America. I chose to write an article with the headline "Don?t Make the Swedish Mistake!". In it, I describe the fantastic Swedish economic development between 1890 and 1950. Entrepreneurs, free trade and low taxes created the highest economic growth in the world. After that, however, growth has declined. Few people work, many people are dependent on government contributions. Welfare services are deteriorating. The main cause is the model of big government itself. If any country wishes to learn from the Swedish example, they should look before 1950, and not after.Read the article (in Spanish) ->

2004-10-05 09:04:05Debate Between the Candidates for Vice President. Tonight Vice President Dick Cheney and Democratic Nominee for Vice President John Edwards will debate on TV. Since the opinion polls now show more even figures following the last debate, it will be important. Dick Cheney said at a campaign rally, according to Financial Times, about Senator Edwards that: "It is alleged that he got his job because he′s charming, sexy, good-looking and has great hair. ... How do you think I got the job?". Thus Cheney stresses that his own competence for the job is heavy enough to outweigh his deficits in those fields. Senator Edwards is reported to have said last week that "Iraq is in a mess because of two men - George Bush and Dick Cheney." Allow me in all modesty to propose adding a third name that all might agree should top the list: Saddam Hussein.

2004-10-04 14:18:25Capitalism Takes Us to Space. The first private space ship, SpaceShipOne, went into space for the first time on June the 21st. The second trip took place on September the 29th and the next will take place today. Its designer, the private entrepreneur Burt Rutan, has every reason to be pleased so far. Now, multi-millionaire entrepreneur Richard Branson is inspired and talks about his Virgin corporation offering space trips in the future. The price for a trip into space will be between $ 100 000 and 200 000. Quite a lot of money, one might think, but still an enormous improvement. The current cheapest trip is with the Russian government′s Soyuz, and the price tag is $ 20 million. This is a great example of private enterprise and free competition versus government monopolies. In free competition, creativity is released, quality improved and prices reduced. The most recent frightening example of government in space is the International Space Station. Its price was first estimated to be $ 8 billion, but now most think it will end at $ 100 billion. Clearly not only earth but also space needs more capitalism.Read more ->

2004-10-04 10:11:41Read This, UNDP and Newsweek! Sweden is sometimes regarded as one of the best countries in the world when it comes to living standards and prosperity. True, Sweden is a good country in many ways and has improved its macro-economic framework during the last 15 years or so. Unfortunately, the rosiest pictures seem more like wishful thinking when one regards statistics. Here are some facts, compiled by my colleague Fredrik Segerfeldt: Since ten years, the number of companies decreases with, on average, 10 a day. None of Sweden′s 50 largest companies was started after 1970. Of a population of 9 million, only just above 3 million go to work on an average working-day. The Government Social Insurance Office supports 26 per cent of the population. Sweden has lost 100 000 jobs in the industry in three years; if that continues, Swedish industry will have zero employees in the year 2033. In 1999, Sweden was no 4 in the international investment league, in 2002 it had fallen to no 27.

2004-10-01 17:29:24Socialist Austria. Now I have learned more about the imfamous socialist aspects of the Austrian society. Currently attending a conference about housing policy in Vienna, it seems to me that this sector is in even worse shape here than in Sweden. Privately owned homes account for only 8 % of total housing in Vienna. One reason is that non-profit housing companies are heavily subsidized by not having to pay any corporate taxes - in contrast to ordinary companies. The non-profit companies are also forced by law to be members of one single, mighty, association. That is textbook corporatism. Incidentally, this association has started newspeak, they talk about "limited profit" instead of "non-pofit", since they want to give the impression that they make profits despite the fact that they don?t. This association, GBV, with some 100 employees, is a heavy lobbyist to keep its privileges and subsidies; a vicious circle. The largest municipal housing company possesses 220 000 homes of the total 900 000 in Vienna. They choose who is going to live where and how much they shall pay - not demand and supply. And by the way, non-european immigrants are not allowed to join the line waiting for a home. These facts might contribute to the explanation of why Governor Schwarzenegger left for the US.

2004-10-01 13:47:09Who Won? Two very diffeerent personalities debated yesterday before the US presidential election. It was a quite even match; while Bush beat Gore clearly in the debates in 2000, this was more even. Kerry is a more skilled debater than Gore. In terms of facts and figures, John Kerry would emerge as the winner from yesterday. But he seems older and more tired as a person than George W Bush, who is quick, plain-speaking and witty. And Bush is very good at repeating his main message and to show his passion for certain issues. If voters are asked what they remember from the debate, most would pobably still feel that Bush is a stronger and more determined leader. That was the most important impression for Kerry to change, and he did probably not achieve that aim despite a good effort. The problem is not his skills at debating, the problem is his changing positions on the issues. If this was Kerry?s last chance to get into the game, he might have failed. But one month and two debates are still left. Much can still happen.